Developing a Robust Risk Appetite Statement

Developing a risk appetite statement, although straightforward in concept, requires significant knowledge of the business and specific expertise in the disciplines of risk management. In this article, we provide practical guidance for understanding how to develop and apply an effective risk appetite statement. risk appetite statement documents the types and amounts of risk an organization is willing to accept in order toachieve its business objectives.Developing a risk appetite statement, although straightforward in concept, requires significant knowledge of the business and specific expertise in the disciplines of risk management. In this article, we provide practical guidance for understanding how to develop and apply an effective risk appetite statement. risk appetite statement documents the types and amounts of risk an organization is willing to accept in order to achieve its business objectives.